VRA predictions of used car price falls ring true
In a survey held during the recent election campaign, the great majority of the 40 responding organisations, who between them handle over one million vehicles each year, felt that used car prices would fall in the second quarter by up to 10%, following four months of rising values.
Now the VRA has pointed out that results so far in Q2 suggest these views will largely be realised, as both Glass's Guide and CAP have indicated that values over the three-month period will have fallen by 5.5% and 3.7% respectively.
The online survey conducted via the VRA website saw 14% of respondents predict used car prices to fall in Q2 between 6-10%, equating to up to £650 on a typical £6,500 used car.
A total of 65% of respondents felt that used car prices would be more likely to fall by up to 5% or £325, while 21% of respondents predicted that used values would remain unaffected.
John Davies, Vehicle Remarketing Association's chairman, said: 'One of the benefits from polling our members is that we are able to instantly tap into a very broad and experienced mindset, all of whom have a major investment in the remarketing sector, either as inventory owners or suppliers of services.
'40 high-profile remarketing professionals who are in tune with the prevailing market conditions provided their considered opinion and it's no surprise we have been proven to be right,' he added.